Shared Services: A Strategic Initiative. March 14, 2009 Wayne Andrews Vice President, Finance JAPAC.

Shared Services: A Strategic Initiative.March 14, 2009

Wayne AndrewsVice President, Finance JAPAC

SSC Asia Pacific – facts 2006• 150 people• 13 process teams, 11 languages• Open 7am (NZ) to 11pm (India)

- Australia - Taiwan- New Zealand- Korea- Singapore - Indonesia- Vietnam - India- Philippines - Hong Kong- Malaysia - Thailand- China - Pakistan

• Japan (not in original scope)

Cost Savings Were Significant

• Total cost of 231 FTEs = USD 13m

• SSC operating costs = USD 7.5m

• Annualized saving of USD 5.5m

• Payback of less than 3 years

• 65+ financial apps instances

• Fragmented data: tens of

thousands of Excel

spreadsheets

• Decentralized decision

making

– Geography

– Line of business

1998

TODAY

• 1 financial app instance• 1 data warehouse• Centralized decision making

– Global process owner– Divisional process owner– Global application owner

Centralize . . . Data, Processes, Systems and Decisions

• Controllers• Order Entry• AR / Cash Apps• Exp Reporting• Purchasing• Fixed Assets• Project Acct• Credit &

Collections• Customer Data• AP• Comp Admin

• Controllers• Revenue

Recognition• Procurement• Comp Admin• Exp Reporting

• Controllers• Revenue

Recognition

• Customer Contracts

• Credit & Collections

Centralize, in 5 Shared Service Centers

197 Countries, 22 Languages

• Customer Contracts

• Credit & Collections

• Exp Reporting• Procurement• Comp Admin

Automate: We Drink Our Own Champagne

APPLICATIONS TECHNOLOGY

Insurance

Manufacturing

Banking

Utilities

Enterprise Deals

Business Applications

Enterprise Deals

Middleware Management

PerformanceManagement

IdentityManagement

ContentManagement & Collaboration

Database

SystemsManagement

Building Value From 60+ Acquisitions

Retail

Health Sciences (Pending*)

Communications

Project-Intensive

(Pending*)

Copyright @2009, Oracle and/or its affiliates. All rights reserved.*Subject to closing conditions.

Figures based on Non-GAAP results. GAAP to Non-GAAP reconciliations are available at www.oracle.com/investor.Figures for acquired companies are non-GAAP results for 12 month period preceding acquisition.

Non-GAAP Operating Margin

Our M&A Integration Process Drives Performance Improvements

Actual Margin

Summary

• It is not sexy

• Executive sponsorship

• BUT it is a game changer

• The real benefits are strategic

Figures based on Non-GAAP results. GAAP to Non-GAAP reconciliations are available at www.oracle.com/investor.